Tesla experienced a significant decline in sales across Europe last month, with figures nearly halving compared to the same period last year.
This downturn coincides with rising apprehensions that Elon Musk’s increasing engagement in political matters—especially his endorsement of Germany’s far-right party—might be alienating customers, as reported by The Guardian.
According to data from the European Automobile Manufacturers’ Association (ACEA), Tesla sold only 9,945 vehicles in January, marking a steep 45 percent decrease from the 18,161 units sold in January of the previous year. This decline has resulted in a reduction of the company’s market share from 1.8 percent to a mere 1 percent, prompting inquiries into whether Musk’s contentious remarks and political affiliations are contributing to the waning demand.
Political controversy and consumer backlash
Musk has emerged as a vocal advocate for far-right ideologies in both Europe and the United States, garnering attention for his controversial actions. His public endorsement of Germany’s Alternative for Germany (AfD) party, which he referred to as the nation’s “best hope for the future,” has ignited considerable debate. He even reached out to congratulate AfD co-leader Alice Weidel following the party’s surge in support during Germany’s national elections.
In addition to his activities in Germany, Musk has also engaged in UK politics, accusing Labour leader Keir Starmer and other officials of concealing grooming gang scandals, despite the absence of any substantial evidence to support such claims. His assertive presence on social media has elicited strong reactions from European leaders, including French President Emmanuel Macron and officials from Norway, Britain, and Germany, who have expressed their disapproval of Musk’s political assertions.
Tesla faces challenges in significant European markets.
Despite a downturn in Tesla’s sales, the overall electric vehicle (EV) market in Europe is experiencing robust growth. In January, sales of battery-electric vehicles surged by 34 percent, achieving a 15 percent market share. Key markets such as Germany (53.5 percent), Belgium (37.2 percent), and the Netherlands (28.2 percent) demonstrated remarkable growth. While the total European car market contracted by 2.1 percent, the EV sector continued to thrive.
In contrast, Tesla encountered substantial declines in several important countries. In Germany, the company recorded only 1,277 new vehicle registrations, marking the lowest monthly figure since July 2021. France experienced an even more pronounced decrease, with sales dropping by 63 percent, reaching the lowest point since August 2022.
Notably, Tesla was surpassed by the Chinese EV manufacturer BYD in the UK for the first time. In Britain, Tesla’s sales decreased by nearly 8 percent, while the overall electric vehicle market saw an increase of 42 percent.
What lies ahead for Tesla in Europe?
The significant drop in Tesla’s sales raises questions about whether Elon Musk’s public persona is negatively impacting the brand’s appeal in Europe. Although Tesla remains a key player in the global EV landscape, its recent difficulties arise amid intensifying competition, particularly from Chinese firms like BYD.
As European consumers increasingly adopt electric vehicles, Tesla’s recovery may hinge on Musk’s ability to dissociate his personal political beliefs from the company’s brand identity. With other manufacturers broadening their EV portfolios and political tensions escalating, Tesla may require more than just new models and price reductions to regain its competitive edge in the region.
